Domestic Airlines Need a New Brand Idea

Airlines Are Off-Track

A basic tenet when stealing market share is not to follow the leader. Rather, it is of

paramount importance to be different and better then the competition. Nowhere is

that tenant more abused than in todays airline industry. One embattled airline after

another clambers to become the next low cost airline believing that \"price\" is the

only means by which customers today can choose.

Soutwest

No one can, or should, knock the success of SOUTHWEST (SW) Airlines, however,

their success in this competitive environment has as much to do with efficiency and

process as it does to lower fares. Lets face it; if SW Airlines moves into a new

route, they take share away from the other players even as the other airlines match

the price of SWs fares.

n all of our brand work, no category that we have ever monitored is so desperately

in need of a fresh look from both the brand and operations perspective. The

dissatisfaction amongst customers is universally (US Domestic Carriers) felt. Yet,

each and every airline has decided that the only value upon which customers today

will choose is that of lowest price. How is that different and better? United creates

TED and US Airways touts itself as giving you more for less. Everyone understands

the less but the more seems to be invisible.

Changes

What has changed in the industry? Quite simply knowledge. 10 years ago

airlines were not very competitive one with another. They did not have to be. Fares

and schedules belonged to the airlines and travel agents and the information

needed to make decisions was easily hidden. Today, through the Internet, all fare

information is as close at hand as your computer monitor. It is even possible to

choose one over another based on pricein an instant.

The airlines acknowledge this and believe that they need to compete in a tug-of-

war

for the travelers business on the sole equity of lowest fare. After all, from what

else is there to choose? This IS the rub - Airlines, with the possible exception of

SW, Virgin Atlantic (VA) and British Airways (BA) are all viewed as only commodities,

not much different than a city bus but with less leg room!

A Lesson Learned

Some years ago, BA did a little mathematics and discovered the premium price vs.

seating space needed for business class was more than a zero sum game. They

converted a good deal of their coach class space into business class space and as a

result, revenues soared. In addition, they dramatically improved their brand image

of being an airline preferred by business.

Today, a similar opportunity exists in the US domestic market. The value equation

between legroom, seat size, and cost can be used to steal share yet no airline has

taken a look at this. Instead they have chosen to limit service, cut down legroom

and seating space and cut costs. Opportunity exists for the brand that recognizes

that they can cast a wider net and offer upper class amenities for a fair market price

(hats off to Virgin Atlantic).

Rather than improving what matters most to customers - comfort, airlines have

resorted to frequent flyer programs, which disguise themselves as loyalty programs

to maintain a customer base. All one needs to do is listen to the disgruntled

travelers in line at the cattle calls that portend to be Gates to understand that most

travelers see the frequent flyer program as a quickly tarnishing chain that holds

them prisoner to their past travel decisions instead of as a benefit. To many

frequent travelers, frequent flyer programs are not seen as a sign of loyalty, but as a

forced and unpleasant choice.

Similarity Spells Opportunity

Where then is the opportunity? It is in open and honest disclosure, better service,

higher degrees of comfort and reasonable (not cheapest) pricing. If the value of a

brand is to be found in the clarity of the customers ability to see themselves as

better for having chosen, then there is ample fodder to differentiate the airline

beyond simply cheapest.

Airlines, treat your customers as human beings and not as cattle. Offer more (as

opposed to claiming more) legroom, service and preferential treatment. Fix the

pricing arbitrage. At our Greensboro offices, for example, we can choose to fly from three airports, one 15 minutes away and two others about an hour a way (Charlotte

and Raleigh). The Greensboro airport has few direct flights and flies to the

Charlotte hub adding a layover to most travel. Because of the security issues

today, sometimes it makes time sense to drive to Charlotte instead of taking an

inconvenient connecting flight. For that privilege, of driving and hour, taking the

same flight that would have been the connecting flight may very well cost twice the

fare. Such pricing capabilities erode brand equity and place the airlines in a

position of looking like a form of usury. What brand can build equity on that

foundation?

Tom Dougherty

CEO, Senior Strategist at Stealing Share, Inc. Tom began his strategic marketing and

branding career in Saudi Arabia working for the internationally acclaimed Saatchi &

Saatchi. His brand manager at the time referred to Tom as a marketing genius,

and Tom demonstrated his talents to clients such as Ariel detergent, Pampers and

many other brands throughout the Middle East and Northern Africa. After his time

overseas, Tom returned to the US where he worked for brand

agencies in New York, Philadelphia, and Washington, DC. He continued to prove

himself as a unique and strategic brand builder for global companies. Tom has led

efforts for brands such as Procter & Gamble, Kimberly Clark, Fairmont Hotels,

Coldwell Banker, Homewood Suites (of Hilton), Tetley Tea, Lexus, Sovereign Bank,

and McCormick to name a few.

Tom possesses an impressive list of elite clients, but more importantly, Tom

possesses a unique knowledge of human behavior. When we buy product, we are

buying ourselves, he explains. You can email Tom at tomd@stealingshare.com.

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